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Each morning, Bill Scher and Terrance Heath serve up what progressives need to affect change on the kitchen-table issues families face: jobs, health care, green energy, financial reform, affordable education and retirement security.

MORNING MESSAGE: Did The Rich Cause The Deficit?

OurFuture.org's Dave Johnson: "The justification for DC's refusal to fix a problem caused by tax cuts on the rich by restoring taxes on the rich is that you can't raise taxes on the rich during a recession. The oft-repeated idea that taxes "take money out of the economy" has become so ingrained that there is no discussion at all, it is just accepted as a given. It is 'conventional wisdom.' It certainly is a convenient conventional wisdom for the wealthy, but it is a fact?"

Dems Plan Votes To Let Bush Tax Cuts Expire For Wealthy

Dem leaders plan floor votes on letting Bush tax cuts for the wealthy expire. Bloomberg: "House Speaker Nancy Pelosi, a California Democrat, said yesterday that she plans to schedule a vote in early December on legislation that would retain lower tax rates and increased credits that apply only to the first $250,000 of a married couple’s gross income or $200,000 of a single person’s ... Majority Leader Harry Reid said he wants to schedule votes on that measure and on a Republican proposal that would also extend tax cuts that exclusively benefit taxpayers with higher incomes ... Neither plan is likely to garner [60] votes and get through the Senate ... Several Senate Democrats emerged from the meeting yesterday saying that they hadn’t reached a consensus on a strategy for extending any or all of the Bush-era tax cuts."

President holding his cards. AP: "Democratic officials said Obama did not embrace a particular approach to the tax cuts in his Oval Office meeting with Democratic leaders. He indicated he wanted to wait for a meeting with Democratic and Republican leaders on Nov. 30 before staking out a position."

Politico notes lack of Dem unity on final compromise position: "Obama used the Oval Office sit-down to quietly push back on grousing by Democratic leaders about the lack of a coherent White House message on tax cuts, asking Reid for more clarity on what compromise his conference could ultimately agree on. But the legislative leaders, while cordial, offered up a wide array of proposals, none of which appeared to offer a clear path to passage, given the united front of opposition promised by newly empowered Hill Republicans."

Steve Benen warns Republicans not to repeat failure and expect success: "...Republicans said Bush's tax policy would produce wonders for the economy, and they got exactly what they wanted. We now know, however, that the policy didn't generate robust growth, didn't create millions of new jobs, didn't spur entrepreneurship and innovation, and certainly didn't keep a balanced budget. And now, as the failed tax policy is set to expire, what's the new Republican message? That this policy must be extended at all costs..."

GOP Blocks Jobless Aid

House fails to pass unemployment insurance extension under fast-track procedure. NYT: "The vote was 258 to 154, short of the two-thirds needed for passage. Republicans have sought to block the extension of benefits before, arguing that the spending should be offset by savings elsewhere."

"GOP Tells Jobless To Drop Dead" says OurFuture.org's Isaiah Poole: "That does show that a measure brought up under regular order, which requires a simple majority, would pass handily. But there are still two major problems. The first one is the Senate, where conservatives have held up extensions of unemployment benefits twice this year. Those roadblocks were broken when Maine Republican Sens. Susan Collins and Olympia Snowe joined the Democrats to help break Republican filibusters. But CQ today quotes Snowe as being concerned about the 'open-endedness' of the benefits ... welcome to the club ... But that is a concern best directed at your Republican colleagues who have steadfastly opposed government efforts to support job creation."

Wonk Room's Pat Garofalo on conservative priorities: "It’s quite absurd that Congress is having an intense discussion over whether or not to spend $830 billion on tax cuts for the richest two percent of Americans, but can’t summon the will to extend unemployment benefits while millions of Americans cope with the lingering effects of the Great Recession. Priorities!"

Some Dems hold out hope for a deal on unemployment insurance. CQ: "While some Democrats think they can leverage funding for expanded unemployment compensation as the price for their support of extending Bush administration tax cuts, emboldened conservatives are demanding that the spending be offset."

Bernanke publicly suggests for more stimulus needed to create jobs, China currency reform. NYT: "'... a fiscal program that combines near-term measures to enhance growth and strong, confidence-inducing steps to reduce longer-term structural deficits would be an important complement to the policies of the Federal Reserve,' Mr. Bernanke said ... Without naming China explicitly, Mr. Bernanke warned that its 'pursuit of export-led growth cannot ultimately succeed if the implications of that strategy for global growth and stability are not taken into account.'"

Krugman charges American conservatives and foreign competitors with "suspect" motives for attacking Fed: "... there are reasonable people — and then there’s the China-Germany-G.O.P. axis of depression ... The Fed’s expansionary policies, however, have the side effect of somewhat weakening the dollar, making U.S. goods more competitive, and paving the way for a smaller U.S. deficit. And the Chinese and Germans don’t want to see that happen ... [But] what’s really motivating the G.O.P. attack on the Fed? ... their real fear is not that Fed actions will be harmful, it is that they might succeed."

Deficit Commission Far From Consensus

Deficit commission groping for consensus. CQ: "The president’s bipartisan fiscal commission is opting for an all-or-nothing strategy of trying to approve a comprehensive deficit-reduction plan ... rather than break the proposal into smaller, more politically palatable pieces. But with less than two weeks to go before the commission’s Dec. 1 deadline to vote on a recommendation, there’s no indication [of] achieving the 14 votes required to send any recommendation to Congress ... the chairmen are not going to overhaul their recommendations ... One of the knottiest challenges is health care ... Senate Budget Committee Chairman Kent Conrad, D-N.D., raised concerns about [a Medicare voucher] plan ... Rep. Xavier Becerra, D-Calif., disagreed with reducing spending through across-the-board cuts ... Sen. Michael D. Crapo, R-Idaho, said the chairmen’s goal of holding revenues and spending to 21 percent of gross domestic product is too high."

OurFuture.org's Richard Eskow finds the traditional media promoted Simpson-Bowles, ignored the Schakowsky deficit reduction plan: "One proposal, from two individuals known to hold very conservative views about Social Security and taxation, was given massive publicity and was frequently mischaracterized as a 'panel' or 'commission' effort. But poor Jan Schakowsky, supported only by the opinions of most Americans, including most Republicans and Tea Partiers, got the shaft."

The Nation diagnoses an epidemic of "deficit panic disorder": "...the jobs crisis is not what has Washington in a tizzy. Instead, the Beltway is going ballistic over a problem that has been blown way out of proportion ... what Washington calls The Deficit Crisis! is really two separate issues related to jobs and healthcare. The first is a short-term deficit created by a combination of factors: George W. Bush's tax cuts; his multitrillion-dollar wars; his boondoggle with Big Pharma, Medicare Part D; the recession; and temporary stimulus spending under President Obama to alleviate the recession. The second is the threat of a long-term deficit brought about almost entirely by rising healthcare costs, which could double Medicare payments as a share of GDP by 2035 if—and it's a big if—healthcare laws remain in their current form."

Wonk Room's Michael Linden says the Rivlin deficit reduction tax reform is "not as progressive as it appears": "... in any given year, poorer and middle class people will be paying a much higher average tax rate than rich people will. True, over the course of a lifetime, things may even out somewhat, but that is very cold comfort to those who will be paying the tax year-to-year."

Conservative opposition to earmarks may weaken when it comes to local infrastructure. CQ: "...infrastructure earmarks are seen as particularly vital to communities, and especially useful politically to the lawmakers who deliver them. For transportation insiders, how the GOP will square infrastructure spending with its earmark ban is key to whether Congress can enact a multi-year surface transportation bill. Earmarks have been almost universally viewed as vital to bringing along support for that bill, often as a tool to win the backing of lawmakers from states that do not fare as well as others under spending formulas ... [Some] Republicans who endorse the ban do not plan to completely forswear infrastructure earmarks..."

GOP Inches Closer To Provoking Shutdown

GOP resists quick solution to keep government doors open. NYT: "A stopgap spending measure that is keeping the federal government running expires on Dec. 4 ... Leading Democrats and the White House were hoping to win some Republican support for an all-inclusive spending measure that would extend through Sept. 30 ... the Senate Republican leader, Mitch McConnell of Kentucky, threw cold water on that idea ... His stance makes it more likely that Congress will approve legislation to finance the government just into early next year."

Leading GOPers pushing short-term funding bill, to set up early '11 fight with President. Politico: "California Rep. Jerry Lewis, fighting for the post of House Appropriations Committee chairman, is actively promoting the notion of a three-month CR running through only February. That would allow him to set up an early confrontation with Obama over not just deeper cuts from the president’s 2011 budget but also tens of billions of dollars in rescissions from prior years."

Conservative movement leader Grover Norquist advocates government shutdown. Politico: "...veterans of that 1995 fight – and in particular incoming House Speaker John Boehner – are ambivalent about Norquist’s shut-it-down push. They saw what a setback the shutdown turned out to be for the party, and Boehner in particular doesn’t sound eager for the same thing to happen to his Republican caucus. Norquist’s provocative comments, however, point up one problem Obama and Boehner have in common – how to confront the tea-party-fueled segment of the Republican party in Congress that’s ready to push the government to the brink over cutting spending."

Incoming Speaker John Boehner tells Tea Party to suck it up and raise the debt ceiling next year. WSJ quotes: “I’ve made it pretty clear to them that as we get into next year, it’s pretty clear that Congress is going to have to deal with this ... We’re going to have to deal with it as adults ... Whether we like it or not, the federal government has obligations and we have obligations on our part ... With about 88 Republican newcomers, GOP leaders might have to persuade many of them to vote for the debt limit. And at least some have made it clear they’re not interested."

Will GOP Consider Constructive Changes To Health Reform?

Time's Kate Pickert analyzes if other GOPers will back the bipartisan Wyden-Brown to ease states' ability to pursue health coverage expansion without individual mandates: "The Wyden-Brown plan also does not impact the huge Medicaid expansion called for in the ACA, which Republicans vehemently oppose. It doesn't eliminate taxes on expensive health insurance plans, or fees levied on medical devices or pharmaceuticals. But if Republicans really want to make changes to the ACA - not just gut the law, which they can't do anyway - this might be a real chance to do so ... Another catch: The Wyden-Brown plan only allows states to opt out if they have a good plan for how to undertake comprehensive health care reform on their own ... red states – especially southern states - are among those least equipped to design and implement reform that could accomplish what the ACA attempts to do, as they typically have higher percentages of uninsured residents and looser insurance regulation."

NYT looks at how conservative-led Wisconsin may stifle health reform: "[Gov.-elect Scott Walker] said that he hoped to put as few restrictions as possible on the ability of insurers to join the exchange, and that he opposed linking their participation to premium reviews. He said he might request a waiver from federal authorities to allow Wisconsin to opt out of certain requirements, although he did not specify which ones."

While Stateline looks at how California is aggressively implementing it, and cutting its budget deficit: " Under the Nov. 2 agreement — a waiver of standard Medicaid rules aimed at allowing states to test innovative new programs — California promised to shave $2 billion per year from its existing Medicaid bill by streamlining care for its highest-cost recipients: seniors, adults with disabilities and children with severe illnesses. The federal government agreed to give California $2 billion per year in return. 'It shows that a state can take advantage of health care reform — as adopted — and do it in a way that is to its best advantage,' says Vernon Smith, director of the consulting firm Health Management Associates ... the federal money will allow counties to provide more coordinated, comprehensive care at lower costs."

"Washington state Dems seek exit from health care reform lawsuit" reports McClatchy: "...knocking Attorney General Rob McKenna out of the multi-state lawsuit against federal health care reform will require convincing the state Supreme Court ... [Seattle] argues the Legislature has authorized the attorney general to take action in only certain areas."

Private Medicare Advantage plans scaling back, but not mainly because of the health reform law. WSJ: "The pullback is largely due to a 2008 law that required the plans to have networks of preferred doctors, with the idea that managed care could be less costly and aggressive marketing could be curbed."

Sane Republicans Urge Embrace Of Science

Outgoing congressman Bob Inglis blasts GOP colleagues for climate science denial. HuffPost quotes: "Because 98 of the doctors say, 'Do this thing,' two say, 'Do the other.' ... There are people who make a lot of money on talk radio and talk TV saying a lot of things. They slept at a Holiday Inn Express last night, and they're experts on climate change. They substitute their judgment for people who have Ph.D.s and work tirelessly ... whether you think it's all a bunch of hooey, what we've talked about in this committee, the Chinese don't. And they plan on eating our lunch in this next century."

Former GOP congressperson Sherwood Boehlert urges his party to accept science: "What is happening to the party of Ronald Reagan? He embraced scientific understanding of the environment and pollution and was proud of his role in helping to phase out ozone-depleting chemicals. That was smart policy and smart politics. Most important, unlike many who profess to be his followers, Reagan didn't deny the existence of global environmental problems but instead found ways to address them."

Treasury Slammed For Foreclosure Inaction

Congressional hearing on foreclosure crisis puts Treasury in hot seat. Felix Salmon: "Adam Levitin['s] written testimony today to the House Financial Services Committee is well worth reading in full. He concludes: '...For many, the preferred course of action is not to deal with a problem until it materializes and certainly to avoid any loss allocation that might threaten US financial institutions. But if we pursue that route, we may well be confronted with an unmanageable crisis.' ... Levitin makes an extremely strong case that it’s much better to bite the bullet now, even if that involves socking the banks with losses ... But Treasury, it’s clear, is not going to act, any more than the servicers or trustees are. Maybe because the technocrats at Treasury don’t really mind seeing pain being borne by homeowners and investors. Just so long as the banks are OK."

David Dayen adds: "...Levitin in particular singled out the Treasury Department. 'The prime directive coming out of Treasury is "protect the banks" and don’t force them to recognize their losses.' ... I don’t see how you can argue with Levitin’s assessment. It’s why most experts are looking to the 50-state Attorneys General investigation to perhaps get to the bottom of the level of fraud."

Breakfast Sides

GM makes proud return to the stock market. W. Post: "...posting a modest gain in shares in a massive public offering that President Obama touted as proof of the auto industry bailout's success ... the Treasury nearly halved its 61 percent stake in GM on Wednesday, raising at least $11.8 billion. It now must wait six months before shedding any more stock ... ome questioned whether the U.S. Treasury, in its eagerness to slough off its stake, rushed GM into an IPO and sold its shares too soon. But based on the results, the government didn't leave much money on the table."

W. Post's Edward Schumacher-Matos warns Dems, fight for immigration reform or lose voters: "Only a frontal confrontation will change the dominant narrative today that focuses on immigrants as a cost and a threat. The political benefit for reform champions will come in 2012. The benefit to the country will come as soon as measures like the Dream Act are passed."

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